Exercise 17-7 Using the plantwide overhead rate to assess prices LO P1 Way Cool produces two different models of air conditioners. The company produces the mechanical systems in their components department. The mechanical systems are combined with the housing assembly in its finishing department. The activities, costs, and drivers associated with these two manufacturing processes and the production support process follow (Loss amounts should be indicated with a minus sign. Round your intermediate calculations and round "Cost per unit and OH rote" answers to 2 decimal places.) Quantity Process Activity Components Changeover Machining Setups 830 Driver Number of batches Machine hours Number of setups 7,620 220 ces Finishing Welding Inspecting Rework Overhead Cost $ 455,500 300,600 229.000 $ 985,100 $ 181, 100 228,000 62,050 $ 471,150 $ 135,000 30,650 60.550 $ 226,200 Welding hours Number of Inspections Rework orders 4,800 780 150 Support Purchasing Providing space Providing utilities Purchase orders Number of units Number of units 570 4,800 4,500 Additional production information concerning its two product lines follows Additional production information concerning its two product lines follows. Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders Model 145 1,600 1,800 415 470 2,320 110 110 380 Model 212 3,200 3,000 415 310 5,300 110 40 190 Required: 1. Using a plantwide overhead rate based on machine hours, compute the overhead cost per unit for each product line. 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $300 for Model 145 and $160 for Model 212. Activity Driver Plantwide OH rate OH Cost per Total Overhead Cost Units Produced unit Overhead Assigned Model 145 Model 212 Using a plantwide overhead rate based on machine .complete the couper loroch product line 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit arn $300 for Model 145 and $160 for Model 212. Activity Driver Plantwide OH OH Cost per Total Overhead Cost Units Produced rate unit Overhead Assigned Model 145 Model 212 es Model 145 Model 212 3. If the market price for Model 145 is $733 and the market price for Model 212 is $510, determine the profit or loss per unit for each model. Model 145 Model 212 Market price brand so for model Overhead Assigned Activity Driver Plantwide OH rate Total Overhead Cost Units Produced OH Cost per unit Model 145 Model 212 Model 145 Model 212 3. If the market price for Model 145 is $733 and the market price for Model 212 is $510, determine the profit or loss per unit for each model. Model 145 Model 212 Market price
